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Owners of morning-after pill Plan B mulling $4 billion sale of company - source

Published 07/26/2023, 02:08 PM
Updated 07/26/2023, 05:02 PM
© Reuters. A package of PlanB One-Step, an emergency contraceptive pill, is seen in security packaging at a CVS Pharmacy in Washington, U.S., July 7, 2022. REUTERS/Sarah Silbiger
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By Abigail Summerville

(Reuters) - The private equity owners of popular emergency contraception pill Plan B, Foundation Consumer Healthcare, have hired advisors to explore options including a potential sale of the company, a person familiar with the matter told Reuters.

A sale could value the company at more than $4 billion, the source said, adding that the process is at an early stage. It is owned by investment firms, including Kelso & Co. and Juggernaut Capital Partners.

Foundation Consumer Healthcare also owns brands such as Breathe Right nasal strips, Dimetapp, which is a medicine for cough and cold for children and allergy drug Alavert.

Plan-B One-Step has been available over the counter for use without age restrictions since 2013, but the health regulator changed its labeling in December for the emergency contraception to make clear that the pill does not alter the course of an existing pregnancy.

Contraception has come under renewed focus in the United States after the Supreme Court in June overturned the landmark 1973 Roe v. Wade ruling that recognized the constitutional right to an abortion and legalized it nationwide.

The privately held company, which makes over-the-counter healthcare products, bought Plan B One-Step and other brands of emergency contraception from Israel-based Teva Pharmaceutical Industries (NYSE:TEVA) in 2017 for $675 million in cash.

Foundation Consumer Healthcare or its private-equity owners Kelso & Co and Juggernaut Capital Partners did not immediately respond to a Reuters' request for comment.

© Reuters. A package of PlanB One-Step, an emergency contraceptive pill, is seen in security packaging at a CVS Pharmacy in Washington, U.S., July 7, 2022. REUTERS/Sarah Silbiger

The report on the potential sale was first reported by Bloomberg News.

(This story has been refiled to correct syntax in paragraph 1)

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